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Date Submitted: 06/29/2010 05:32 PM
Managing and Minimizing Risk
Managing and Minimizing Risk
All companies must be sensitive to potential regulatory risks that could arise while running their business. It is crucial for them to have a system in place to identify and manage these risks through preventive, detective, and corrective measures. Developing a functional risk management team is beneficial to a company by saving them time and money if a regulatory issued is breached. A plan must be in place to ensure minimal damages if any. The following is an outline for a plan to help businesses identify and manage regulatory risks.
The Environmental Protection Agency (EPA) was created to manage the enforcement of the environmental protection laws. The laws in place help prevent air pollution, water pollution, protect endangered species, and to regulate toxic substances and hazardous waste. The EPA also ensures state environmental laws are enforced. To assist with environmental protection the National Environmental Policy Act (NEPA) was created. Cheesmeman (2010) stated, “The NEPA mandates that the federal government consider the “adverse impact” of proposed legislation, rule making, or other federal government action on the environment before the action is implemented” (p. 704). Whenever a new proposal is made that will have an impact on the environment an environmental impact statement (EIS) is required. The purpose of an EIS is to provide enough information about the environment to enable the federal government to determine the feasibility of the project. The EIS is also used as evidence in court whenever a federal action is challenged as violating the NEPA or other federal environmental protection laws. Examples of actions that require an EIS include proposals to build new federally funded highways, to license nuclear plants, and the like (Cheesmeman, 2010). An EIS is made public to inform citizens of the proposal. After reviewing the EIS and comments from citizens a decision will be made by the...